The Thinking Behind Gravity Payments CEO's Move to Pay His Workers $70,000 a Year

April 15, 2015 7:19 PM

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Dan Price, the CEO of Gravity Payments in Seattle, has touched off a national debate over his plan to pay all of his workers a yearly salary of at least $70,000. But where did that figure come from and what's behind it?

The number, the CEO said, comes from a 2010 Princeton University study by economist Angus Deaton and Nobel-prize winning psychologist Daniel Kahneman and published in the Proceedings of the National Academy of Sciences. In the study, the researchers analyzed the answers to questions about income and...